Marietta budget committee reviews $173.1 million FY2027 proposal as MEAG settlement raises costs

Marietta’s Budget Race Committee on April 6 heard a presentation of the proposed fiscal year 2027 preliminary budget, which staff said totals $173,125,144 and is deliberately conservative in light of recent developments with MEAG, the joint action agency.

The presenter (S4) opened the review by outlining packet materials and on-screen slides showing FY24–FY25 actuals, FY26 year‑to‑date and adopted budgets, FY26 projections, and the proposed FY27 columns. “The proposed budget for the upcoming fiscal year in total is $173,125,144,” S4 said. She told the committee the FY25 surplus of $4.9 million was driven primarily by $7.3 million in developer contributions designated for substation construction, board‑approved retail rate increases and lower water usage that carried into FY26.

S4 told members the city will face additional settlement and supplemental‑credit shortfalls related to MEAG. She said MEAG will not issue the projected year‑end settlement and that the city will pay an additional settlement amount; she cited a $700,000 settlement figure and explained how timing and prior budgeted settlement assumptions result in roughly $3.0 million in additional costs this fiscal year. Committee members pressed MEAG’s allocation methods and supplemental credits, saying staff previously raised disagreements with MEAG’s numbers.

On FY27 assumptions, S4 said the proposal includes no retail rate increases, incorporates a projected $6.9 million increase in the cost of sales from the adopted FY26 budget, assumes a 3% transfer and a 4% midyear salary increase for eligible employees, and assumes salary savings from two unfilled electrical FTEs. Capital expenditures supported by revenue are estimated at $8,280,000. “We did not use any reserve funds to balance the budget for this coming fiscal year,” the presenter said, adding that staff reduced some capital projects to avoid operational cuts and maintain employee stability.

Committee members and staff discussed a prospective data‑center customer (referred to in the meeting as “Vantage”) that officials expect will begin contributing revenue in FY27 and materially improve the city’s position; however, staff said the budget does not assume full Vantage revenues and is intentionally conservative. Members also criticized MEAG’s treatment of supplemental credits and told staff they would pursue the issue further, including in executive session.

The committee did not adopt the budget at this meeting; after the discussion the body moved into executive session to continue deliberations on MEAG‑related matters. The presenter said she will adjust a projected transfer (about $2.3 million) and bring revised budget figures back to the committee next month.